Pag-IBIG Fund's new saving scheme targets Bicol’s public school teachers

LEGAZPI CITY -- With the grant this year of salary increase to state workers, the Home Development Mutual Fund (HDMF) or Pag-IBIG Fund in Bicol has renewed its efforts to enroll them to its newest contribution collection scheme.

Primarily targeting Bicol’s around 30,000 public school teachers, the agency recently entered into a memorandum of agreement (MOA) with the regional office of the Department of Education (DepEd) here that allows the former to discuss with teachers the scheme called PagIBIG II.

In a memorandum issued last week, DepEd regional director Ramon Fiel Abcede instructed all schools division superintendents, principals and other education officials concerned to allow representatives of HDMF-PagIBIG Fund “to discuss briefly the substantial provisions set forth in the MOA” with teachers.

Abcede’s memorandum entitled “Upgrading of Monthly Membership Contribution and Enrolment to Modified PagIBIG II” said the Members Services Branch of HDMF “shall coordinate with schools division offices” relative to the matter.

The Modified Pag-IBIG II (MP2), according to the HDMF, is designed to provide members with another savings option that would grant them with a yield higher than those given under the Pag-IBIG I membership program.

The new program requires a minimum contribution of Php500 per month with a renewable term of five years and offers flexible dividend rates that are always higher than PagIBIG I.

Contributions and earnings are government guaranteed, the HDMF said.

The program took effect in February 2010 but since availing of it is not compulsory, its enrollment was minimal due to the low take-home pay of teachers, a local HDMF official on Wednesday here said.

Under PagIBIG I, as mandated under Republic Act 9679 or the HDMF Law of 2009, all salaried government employees are required to be members and contributors in the intention of improving their life quality by offering housing assistance and provide them saving schemes that gives an opportunity to set aside money for the future.

Once a member completes the 240 monthly contributions, or the 20-year maturity period, he or she would get the entire amount saved, the equivalent contributions made by the employer (if there are any) and the dividends earned.

Members are required to contribute at least two percent of their monthly salary in exchange for the many benefits such as savings and opportunity to avail of short-term loans as well as affordable housing loan assistance, according to the HDMF. (PNA)